Fidelity in $4 million investment

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Fidelity Life Assurance of Zimbabwe plans to invest $4 million in a new housing project in Harare this year.

Managing director Simon Chapereka said the project was expected to yield 6 000 stands.

“The group is at an advance stage in negotiations for the purchase of 380 hectares in Harare where we expect to embark on another housing development project,” Chapereka said.

“We expect this to come into stream end of year to early next year.”

Chapereka said he expected the project development to cost between $30 million and $48 million.

The company last year invested $5 million in the development of medium to low-density residential stands on 67 hectares of land in Manresa Fidelity Park near Arcturus.

The land was developed in two phases, with the first phase having 33 hectares and the second phase 34 hectares.

Chapereka said from the 317 stands in the first phase in Manresa Fidelity Park, 129 had been sold.
“We expect to embark on the second phase of the development before year-end,” he said.

Fidelity recorded a 53% increase in premium income to $11,7 million for the year ended December 2011 due to improved demand for individual life products.

Underwriting surplus for the group stood at $4,9 million from $2,6 million, while total comprehensive income stood at $10,1 million, indicating an increase of 200% from $3,3 million.

Financial director Paul Razunguzwa last week said premium income increased from $7,7 million the previous year while benefits, expenses and claims stood at $8,4 million from $5,8 million in 2010.

“The overall growth in premiums of 53%, lower claims and expense growth of 45% and growth in non-insurance income led to an improvement in the group’s profit before tax from $3 million to $9,4 million, an increase of 209%,” Razunguzwa said.